Electric car, truck, and SUV sales are currently growing more quickly than public EV charging stations, causing range anxiety among drivers who don’t know if the current car charging infrastructure will be able to support their needs. Although electric car sales have surged to more than 300,000 in Q3 2023, electric charging stations still need to catch up. As such, the lack of chargers combined with electric vehicle (EV) market growth creates opportunities for hosting EV charging stations for businesses.
Installing electric car charging stations can be a smart move for a variety of companies and organizations. It can increase foot traffic to nearby businesses and generate extra income. Offering electric car charging options can also provide a competitive edge and help build customer loyalty. Plus, EV charging for businesses shows a commitment to sustainability, which can attract eco-conscious customers and employees.
1. Increased Foot Traffic & Customer Loyalty From EV Chargers
Because it can often take an hour or more to charge an electric car battery, it’s critical to make public EV charging stations convenient for road trips and local driving by pairing them with amenities. This means that EV charging stations for businesses can increase customer spending from EV drivers compared to drivers of internal combustion engine (ICE) vehicles because they often spend more time on-site. Likewise, many Tesla, Nissan Leaf, and Chevy Bolt drivers appreciate businesses with electric car charging options, boosting customer loyalty.
Direct current fast chargers (DCFC) can charge a battery electric vehicle (BEV) to 80% in just 20 to 60 minutes, according to the U.S. Department of Transportation. By contrast, Level 2 EV chargers use AC power, have longer charging times, and require 4 to 10 hours to fully recharge a depleted EV battery. However, plug-in hybrid electric vehicles (PHEVs) tend to have shorter charging times than BEVs, because the battery capacity is typically much smaller.
“The data suggests that DC chargers—which charge faster—should be located along travel routes, while Level 2 chargers—essentially used for convenience charging—should be easily accessible near places where EV owners may already be visiting such as retail venues and entertainment venues,” said Brent Gruber, executive director of the EV practice at J.D. Power.
2. Additional Revenue Streams from Commercial EV Charging Stations
EV charging stations for businesses have become a profitable venture. The increased demand for electric vehicles and the growing awareness of the importance of sustainable transportation have created a need for accessible charging infrastructure. As a result, businesses, apartment buildings, and other establishments are installing EV charging stations to attract customers.
According to Stable Auto Corp., the average utilization of non-Tesla fast-charging stations in the US doubled from 9% in January to 18% in December 2023, demonstrating the rising demand for charging infrastructure. This surge in utilization indicates that many charging stations are becoming profitable for the first time.
EV Charging Station Income
Businesses with EV chargers can generate passive income by billing customers for the use of the electric charging equipment. Billing options for EV charging include a fee:
per kilowatt-hour of electricity used
for the time connected to the charging station
for EV charger subscriptions.
Regardless of the pricing model, businesses can generate additional revenue and enjoy the financial benefits of hosting EV chargers. Some EV charging station hosts choose not to charge a fee and offer free electric charging as a perk to patrons and employees.
Businesses hosting EV charging stations often partner with vehicle charging networks to assist in billing customers. Some charging networks allow users to monitor vehicle charge levels and find available chargers from a mobile app.
Different EV charging networks use various platforms and have one or more types of charging ports. For example, the Tesla Superchargers have North American Charging Standard (NACS) ports and work with Tesla vehicles or those with adapters.
By contrast, many other charging networks use Combined Charging System (CCS) connectors. Some networks have EV charging facilities across North America, but many are concentrated largely in California due to a high concentration of EV ownership.
3. Environmental Impact and Corporate Social Responsibility
Installing EV charging stations for businesses can help reduce a company's environmental impact and promote corporate social responsibility initiatives. Charging infrastructure demonstrates a clear commitment to environmentally responsible business and encourages the use of electric vehicles, reducing greenhouse gas emissions.
Many companies have corporate sustainability goals to help promote a cleaner environment and reduce the company's ecological footprint. For example, numerous companies have net-zero carbon emissions goals, and EV charging stations for businesses can complement these targets.
By offering EV charging services, businesses also make it easier for their employees and eco-conscious customers to embrace zero-emission transportation options and send a clear message about their dedication to reducing carbon emissions. Companies that install EV charging stations can also enhance their public image by encouraging clean transportation and less reliance on fossil fuels.
4. Employee and Community Engagement From Onsite EV Charging Stations
Offering EV charging facilities as an employee perk demonstrates a commitment to sustainability and provides a tangible benefit to the workforce. This is especially helpful for employees who don’t have home EV chargers or only have access to chargers with slower charging speeds. Additionally, employees often appreciate their employer's role in reducing their carbon footprint, which can boost their sense of purpose and engagement in the company's mission.
Publicly available EV charging stations provide a valuable service to the community. By supporting the growth of electric vehicle adoption within the community, organizations demonstrate a commitment to local sustainability initiatives that can complement sustainability targets.
5. Government Incentives and Support for Commercial EV Charging
There are numerous incentives for commercial electric vehicle supply equipment (EVSE) designed to help promote EV adoption. Most of these programs aim to reduce carbon emissions and promote clean energy use across the U.S.
The federal government offers incentives in the form of formula and discretionary grant funds for EV chargers, loan financing programs, and tax incentives available to eligible businesses.
Numerous states offer rebates and other incentives for installing Level 2 and DC fast chargers with funding from the National Electric Vehicle Infrastructure (NEVI) Program.
Utility companies may also have EV charging incentives for homeowners and businesses to promote EV adoption and promote clean energy use.
EV incentive programs can reduce the costs associated with hosting EV charging stations. Each program has unique requirements, such as where chargers are located, the type of charging hardware, and the organizations eligible for funding.
What are the Largest Networks of EV Charging Stations in the U.S. in 2024?
An EV charging station network refers to a collection of charging stations that are interconnected and operated by a single company or organization. These networks are designed to provide electric vehicle owners with a widespread and reliable charging infrastructure.
These EV charging station networks often utilize advanced technologies and communication systems to manage and monitor chargers, track electricity usage, and facilitate payments. These networks can provide EV drivers access to a wide range of commercial EVSE and often offer membership or subscription programs that provide additional benefits and discounts. The objective of an EV charging station network is to provide EV owners with a seamless and accessible charging experience, reducing range anxiety and encouraging the adoption of electric vehicles.
What Businesses Benefit The Most from Installing EV Charging Stations?
EV chargers at commercial facilities create a win-win situation for electric car drivers and businesses benefitting from charging stations by attracting potential customers and creating a competitive edge. EV charging stations for businesses are ideal for:
Shopping centers and retail stores
Restaurants
Movie theaters
Multifamily housing
Hotels
Office buildings
Medical facilities
Gas stations
Paid parking lots
Car dealers
What are the Disadvantages of EV Charging Stations For Businesses?
EVSE can have some disadvantages for businesses. Here are a few:
Cost of EV charger installation and maintenance: Installing EV charging stations can be expensive, especially for businesses with large parking lots or multiple locations. Businesses are also responsible for maintaining and repairing the EVSE, which can add ongoing costs. However, there are government incentives available that can decrease the upfront cost of installing EV charging stations for businesses.
Limited parking availability: EV charging stations require dedicated parking spaces, which can limit the availability of regular parking spots for customers or employees. This can be especially significant for businesses with limited parking space or high parking demand.
Uncertain return on investment of EVSE: While EV charging stations may attract electric vehicle owners as customers, their actual usage and profitability may vary. Factors such as location, demand, and pricing structure can influence businesses' return on investment. Businesses should carefully evaluate the potential revenue from EV charging stations and conduct cost-benefit analyses before investing in chargers.
Power grid limitations: Depending on a business's location's electrical capacity, adding multiple EV charging stations can strain the power grid and require expensive upgrades to the electrical infrastructure. This may lead to increased utility costs or the need to limit the number of charging stations that can be installed.
Complex EV charging station regulations and standards: Various regulations and standards at the local, state, and federal levels govern the installation and operation of EV charging stations. Complying with these requirements can be time-consuming and may involve additional costs for businesses.
The mission of GreenLancer is to help overcome clean energy permitting, engineering, and design challenges. The GreenLancer marketplace makes it fast and easy for clean energy installers to obtain design and engineering services, such as EV charging station plan sets and engineering reviews, from qualified fulfillment partners. The U.S.-based internal GreenLancer team is available as needed by phone, email, and chat during the process to ensure project success.
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Overcoming Challenges for Successful EV Charging Stations for Businesses
Commercial EV charging stations may face challenges throughout various phases of the project. For starters, it is critical to fund the initial investment, as designing, procuring, and installing charging infrastructure can be capital-intensive.
Also, electric vehicle charging infrastructure and installation challenges can also arise, such as identifying suitable locations, ensuring compatibility with existing electrical systems, and obtaining the required EV charging station permits. Businesses must also plan for ongoing maintenance and operational expenses, including upkeep, user support, and monitoring.
Overcoming these challenges is essential for businesses to enjoy the many advantages of hosting EV chargers, but GreenLancer is here to help. GreenLancer has a network of certified designers, licensed engineers, and fulfillment partners ready to complete on-demand fulfillment of EV charging services quickly, such as:
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